Brazil expands soybean crushing capacity on strong biofuel demand

Abiove, the oilseed lobby, said that Brazil's soybean processing companies are expected to invest 5,9 billion reais (1.11 billion dollars) in the next twelve months to meet growing demand for biodiesel.

The investment would increase the processing capacity of the country by 8% or approximately 6 million metric tonnes per year, in a sector that is dominated by Bunge, ADM and Cargill.

According to USDA data, Brazil is the world's third largest processor of oilseeds, after China and the United States.

Abiove reports that companies are committed in increasing their processing capacity to produce biodiesel. Brazil has a mandate that requires 15% biodiesel to be blended with diesel. This is expected increase.

Abiove stated that if all the planned investments are confirmed Brazil's crushing capability could increase to 80 million tonnes per year.

Daniel Amaral is the director of economic affairs at Abiove. He said: "The increase in capacity installed demonstrates the industry’s dynamism, and its strategic importance for the Brazilian economy."

ANP, the oil regulator, says that about 75% of biodiesel produced in the country is made from soy.

Abiove reported that the number and number of soy-processing firms in Brazil increased from 132 to 75 by 2024.

($1 = 5.3174 reais) (Reporting by Roberto Samora; Writing by Ana Mano; Editing and Kirby Donovan) ($1 = 5.3174 reais). (Reporting and writing by Roberto Samora; editing by Kirby Donovan).

(source: Reuters)